Regulation

Gas networks are natural monopolies; consumers can't choose which network they want to use to transport gas to their homes and businesses.

To make sure that we and other gas networks keep customer bills as low as possible and improve the service we provide, we are regulated by Ofgem under a price control framework called RIIO, which is designed to mimic the effects of competition.

RIIO (Revenue=Incentives+ Innovation+Outputs), is recognised as a world leading framework for setting network companies’ price controls.

RIIO is designed to encourage network companies to:

  • Put stakeholders at the heart of their decision-making process
  • Invest efficiently to ensure continued safe and reliable services
  • Innovate to reduce network costs for current and future consumers
  • Play a full role in delivering a low carbon economy and wider environmental objectives.

Our performance

Gas networks are natural monopolies; consumers can't choose which network they want to use to transport gas to their homes and businesses.

To make sure that we and other gas networks don't exploit this and charge customers unfairly, we are regulated by Ofgem under a price control framework called RIIO.

Our regulatory framework

RIIO-GD2 will be the next price control for Cadent effective from April 2021.

Ofgem have begun engaging to shape the new framework and all documents relating to our responses can be found here.